Living in LoCo
Residents Question Developer's HOA Role
Erica Garman at 12:27 p.m., April 18, 2008 (7 comments)
RELATED POLL: How happy are you with your HOA?
Lee’s Crossing is a bucolic equestrian community of 55 lots where million-dollar homes sit on 10-acre-minimum lots. These are dream homes.
Residents are happy enough with their neighbors (fences make for good ones, after all), but some are not happy with the developer, Jack Merritt, who also happens to be the homeowner association board president.
A home for sale on 12 acres with an asking price of $1,099,000. (Photos by Erica Garman)
Homeowners in Lee’s Crossing tell tales of capricious violations assessed by the HOA’s architectural review board (ARB). They’re also upset that the annual HOA fees have doubled to $2,100 to help cover $30,000 in possible legal fees the HOA may need to defend lawsuits from its own residents.
George Garsson, a resident since 1999, said he’s frustrated by the HOA and its ARB.
“Everything is subjective to Jack’s own personal opinion," Garsson said. "He’s cost everyone extra money, time and delays.”
One home in the community is rumored to have 41 violations against it, with fines accruing each day they are not fixed.
Also upsetting to residents was what some called a political stunt by Merritt to retain HOA control.
In late March, before board elections, Merritt annexed 13 additional lots into the community. Each lot owned by the developer gets three votes, whereas homeowners are allotted only one vote. With that action, Merritt gained a majority vote on the HOA board. He canceled the elections and reappointed himself, his wife Valerie, and three resident members.
From left to right: Bill Daly, Mike Arndt (property manager), Jack Merritt, Valerie Merritt, John Bennett, Paul Beckwith and Barry White.
Merritt assured me that the three resident members do have full voting privileges and could vote against any board decision that he and/or his wife make.
At last night’s annual meeting at the Lucketts Community Center, resident mood was heavy. Merritt requested the presence of two sheriff's deputies to maintain order if things got out of hand.
Resident Dave Sherfey announced that he had 31 signatures from residents asking for Merritt’s removal from the board. Merritt and the HOA legal counsel, Bill Daly, reiterated that they must stand by the HOA covenant documents that each community member signed when purchasing their home. Daly said, “Does it matter about the 31 signatures? The answer is ‘no.’ My advice isn’t based on what’s moral or ethical -- it’s based on the law and that’s how I have to advise my client.”
Residents turn out for the annual meeting at Lucketts Community Center.
Resident Graham Davies stated, “Common sense must prevail here. I’m not American, but I know what America stands for. At the end of the day, it should be what the people want and expect.” Residents applauded in agreement.
At least 10 other residents, of the approximately 30 in attendance, spoke of their frustration and dissatisfaction with the HOA.
At the meeting’s conclusion, after residents were given the opportunity to speak, board members -- including Merritt -- pleaded with residents to become more proactive and involved in community matters. The board agreed that resident committees should be formed to address problems quickly and increase communication. When a board member suggested that a specific unsatisfied resident head up a committee, the resident declined. “I travel a lot,” he said.
Many residents in the community own horses.
This is one problem I hear all too often when speaking with HOA board members --residents don’t get involved. Board presidents repeatedly say that few, if any, community members attend board meetings. Most residents, they say, don’t have a clue about decisions that are being made on a monthly basis that will impact them and the neighborhood.
How do you feel about HOAs? Most people love 'em — until they get a violation notice, that is.
In most instances, including Lee’s Crossing, the developer governs the HOA until a certain amount of homes or lots are purchased in a community. What do you think of this system? Should community members under developer rule be able to modify HOA/ARB docs if they feel changes are in order?
Got HOA issues in your community? If so, ping me at livinginloco@wpni.com.
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The Declarant/Developer - Jack Merritt has been in effective control of the HOA BoD and ARB for the past 9 years. Currently the homeowners have endured significantly under his control and do not desire that he continue on the BoD or the HOA.
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The notice for annual meeting for 25-Mar-2008 and HOA budget details were sent to the homeowners simultaneously. The budget stated 55 lots - i.e. the Lees Crossing HOA membership as is known to the homeowners. Accordingly, collectively the homeowners obtained 31 signatures - i.e. more than 50% majority to overthrow the current BoD and to elect a new BoD.
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At this time - the Developer Jack Merritt owned about 10 lots. But on 19th March 2008, just a week prior to the previously scheduled meeting, Jack Merritt/a.k.a. the Declarant/a.k.a. the Developer sneakingly annexed 13 additional lots and invoked Class B shares - granting him 3 votes per lot - thereby increasing his tally of votes to 10+39=49 and becoming a majority votes holder.
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WHAT IS NOTEWORTHY THAT HE DOESN'T HAVE TO PAY ANY HOA DUES ON ANY OF THESE LOTS UNTIL HE OWNS THEM IN CAPACITY AS THE DEVELOPER AND HE HAS NOT PAID HOA DUES FOR ABOUT 9 YEARS.
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Also by invoking Class B shares, he invoked Declarant rights to select the BoD and to terminate the BoD elections and placed himself back on the BoD. Per the HOA covenants the Declarant/Developer can stay in control over the HOA BoD, ARB and other offices until his position is not reduced to a minority - i.e. until he desires to sell his lots and be reduced to minority.
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In the current scenario - these actions resulted in depriving the homeowners of their fair right to select their BoD (after 9 long years), to have a say in the operations of the HOA and to live in a community to their liking in abiedence with with HOA covenants. Rather now, similar to the past, the homeowners will have to live in fear of the Declarant/Developer - for should they offend him or be on his wrong side, he will attack them with innumerable violations and will invoke the HOA previleges to initiate legal action against that erring homeowner - as he has done so in the past.
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Also is noteworthy that the Declarant/Developer had in 2004 removed these 13 lots from the Lees Crossing community and created a seperate community - Jackson Heights - to sell as cluster lots and to profit from that. But since he hasn't sold them - he is PLAYING MUSICAL CHAIRS by annexing them back in to Lees Crossing and still does maintain the PREVILEGE TO REMOVE THEM from Lees Crossing community in the future - AND HE CAN DO ALL THIS WITHOUT TAKING ANY CONSENT OF ANY HOMEOWNERS.
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The homeowners are upset due to these scruplous actions of the Developer/Declarant and their being deprived to take over control and make the community their own- for god knows how long.
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This is blatant ABUSE of HOA previleges by the Developer/Declarant/Jack Merritt - Merritt Family Partnership.
Thank you much.
Posted by parash_shah (anonymous) on April 18, 2008 at 2:19 p.m. (Suggest removal)
Also I forgot to mention that the changes that the Declarant made to the HOA covenants - he did not deem it necessary to inform all of the BoD of these changes immediately and also the current BoD did not immediately inform the homeowners on their learning about it.
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The Declarant's actions completely changed the voting structure, the rights of homeowners to elect their BoD and other related actions - reducing them to - as if they don't count. And all this was never communicated to all the homeowners in a timely fashion.
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Furthermore, there are additional changes to covenants that the Declarant has made on 3-Apr-2008 that has yet to be communicated to the homeowners and it deals with votes and eligibility - WOW !!!
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Isn't this BLATANT abuse ...
Posted by parash_shah (anonymous) on April 18, 2008 at 2:31 p.m. (Suggest removal)
Any unsuspecting prospective buyers,do yourselves a big favour, check with the current residents (they will be happy to inform you of their nightmares!)before you make any decisions..I wish I had!!
Posted by graham (anonymous) on April 18, 2008 at 5:09 p.m. (Suggest removal)
What a complete nutjob! Glad I don't live there. I guess he doesn't realize that, other than making his neighbors miserable, he is devaluing his own property in the process. Lose, lose...
Posted by qazwsxedcrfv (anonymous) on April 22, 2008 at 11:38 p.m. (Suggest removal)
I don't understand why you ended the article with a discussion about committees and how homeowners just dont get involved. Why would any resident waste their time in such a way, when the developer keeps all the power and decision making authority? He obviously doesn't care or respond to residents' concerns. Why else would some many homeowners show up at the meeting angry and upset? Why else would he need police protection? you really missed the point. homeowners dont want to be less involved, they want Merritt to be. and no, i dont live there.
Posted by wpost456 (anonymous) on April 25, 2008 at 4:34 p.m. (Suggest removal)
Any potential buyers looking into Lee's Crossing who take the time to do a little Google research beforehand will come across this- And very likely decide to look elsewhere.
It's not like these are 10 acre lots in Arlington County- This is rural Loudoun and there are plenty of other homesite options in the area when you're looking in the 1 million+ range.
Posted by mitch5 (anonymous) on April 26, 2008 at 12:04 p.m. (Suggest removal)
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